Agriculture Reference
In-Depth Information
farmers 51 rupees per kilogram for dried coffee, with an advance to pro-
vide for processing costs and to pay a portion to farmers at the time of
procurement.54 The market rate for nonorganic coffee at the time the
agreement was drafted was 38 rupees per kilogram. Farmers in Organic
Wayanad therefore considered the buyer's offer of 51 rupees a fair price
and were glad to be receiving payment for their work more quickly than
usual.
However, the global price of coffee increased between November and
January, due to widespread disease in Brazil's coffee crops.55 In January
2011, at the time of harvesting and processing in Wayanad, the price of
nonorganic, dried conventional coffee rose to over 52 rupees per kilo-
gram in the area
—one rupee above the agreed-upon price for Organic
Wayanad. Buyers and traders quickly moved in to procure organic and
nonorganic coffee from farmers throughout Wayanad at a price higher
than what Organic Wayanad had agreed to in advance with its buyer in
Germany.
K. M. George, the coordinator of the ICS, explained how the organi-
zation coped with the situation: “W hen the price was thirty-eight [ru-
pees per kilogram], we made an agreement to sell at ity-one. In Janu-
ary, the price of coffee went to ity-two here. Now, can we change an
agreement?” he asked me. “We made an agreement and they gave us an
advance. So, can we change the agreement?” He emphasized again that
Organic Wayanad and IOFPCL had already negotiated the contract, and
well in advance to accommodate farmers' requests. George had worried
that farmers would renege on their end of the arrangement, but he was
also anxious about how the buyer would respond. “Anyway, we mailed a
request,” he explained.
“Okay, so you wrote a leter?” I asked.
“Yeah, we wrote saying that a problem happened, the price went up
. . . so think about it,” said George. “So, they made calculations . . . they
reversed and gave us ity-ive.”
“So, you wrote the leter, and the buyer said 'it'll do ity-ive?'”
“Yeah,” George answered. The buyer had been willing to renegotiate
the contract. “We asked sixty rupees. We need sixty rupees. But they in-
creased to ity-ive.”
